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Mirman, Leonard J.; Schenk-Hoppé, Klaus Reiner - 2004

In this paper, we study the effect of financial markets on the investment of a two-good two-country economy with … competitive (spot or financial) markets. We compare the investment-consumption decisions of both "market" models with the …-dependent preferences of consumers that lead to dynamically efficient investment decisions. We show that the investment decisions in both …

Persistent link: https://www.econbiz.de/10014136577

Financial Markets, Financial Dependence, and the Allocation of Capital

Pang, Jiaren; Wu, Haibin - 2013

We explore one specific channel through which finance promotes growth: the allocation of capital. Using international industrial data, we find that countries with developed financial markets invest more in growing industries, and pull out more funds of declining ones. Most interestingly, this...

Persistent link: https://www.econbiz.de/10014046865

Financial Market Frictions, Monetary Policy and Capital Accumulation in a Small Open Economy

Huybens, Elisabeth; Smith, Bruce D. - 2008

We consider a small open economy where domestic residents combine their own income with credit obtained either at home or abroad in order to finance capital investments. These investments are subject to a costly state verification (CSV) problem. In addition, lenders to domestic residents...

Persistent link: https://www.econbiz.de/10014053746

Financial Markets and Stochastic Growth

Mirman, Leonard J.; Schenk-Hoppé, Klaus Reiner - 2003

The authors study the effect of financial markets on the investment of a two-good two-country economy with stochastic … financial) markets. The authors compare the investment-consumption decisions of both "market" models with the benchmark case of …-dependent preferences of consumers that lead to dynamically efficient investment decisions. It is shown that the investment decisions in …

Persistent link: https://www.econbiz.de/10014084178

Capital Formation and Financial Intermediation : The Role of Entrepreneur Reputation Formation

Li, Emma - 2016

Recently a new type of institution has emerged, crowd funders. These entities: 1) channel capital to create intellectual property; 2) gather information on project and entrepreneur quality; and 3) gauge demand information directly from individuals to improve the efficiency of capital allocation....

Persistent link: https://www.econbiz.de/10013005729

Investment Opportunity Sets, Operating Uncertainty, and Capital Market Pressure : Determinants of Investments in Tax Shelter Activities?

McGuire, Sean T. - 2012

This study examines whether factors that influence firms' overall investment strategies also influence the decision to … invest in a tax shelter. Our results suggest that firms with large investment opportunity sets are less likely to invest in … overall investment strategy …

Persistent link: https://www.econbiz.de/10013114368